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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Next On The List For Kicks Upwards After an Earnings Report Comes Out. Ford

Look at this. A five day chart on Ford showing a one dollar bounce on the release of their earnings report.
When earnings come out stocks and options will jump. Catching a one dollar price swing on a twelve dollar stock for option players can be huge. Apparently their earnings were better than expected, however the yardsticks used to measure success can sometimes be short sighted. Sales were up, that seems to be for the short term the most important thing. Ford has however lost market share over the last few years.
Here is a mid afternoon look at how one series of Call options look. It only really shows part of the action.
One point is that you could have been waiting for this opportunity. The second point is that watching a ten dollar stock is not as exciting as watching a $600.00 stock like Eli Lilly. A run of recent good earnimg reports has caught many option traders sleeping. Ford options plays on their "earning-report-releases" are a staple to come back to time and time again, for many option players.

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